KfW, a government bank that administers federal shareholdings and passes out soft loans to home-owners, was dubbed "Germany's dumbest bank" by the mass-circulation newspaper Bild when the scandal broke. The automated payment on Monday went out just hours before Lehman declared itself insolvent. Lehman did not settle the swap with the equivalent in US currency, 500 million dollars, leaving KfW in the queue as a creditor. Quoting banking sources, the German weekly magazine Focus said KfW had asked a Frankfurt law firm, Clifford, to study if it could sack or bring a prosecution against executives responsible for the blunder.
KfW, a government bank that administers federal shareholdings and passes out soft loans to home-owners, was dubbed "Germany's dumbest bank" by the mass-circulation newspaper Bild when the scandal broke.
The automated payment on Monday went out just hours before Lehman declared itself insolvent. Lehman did not settle the swap with the equivalent in US currency, 500 million dollars, leaving KfW in the queue as a creditor.
Quoting banking sources, the German weekly magazine Focus said KfW had asked a Frankfurt law firm, Clifford, to study if it could sack or bring a prosecution against executives responsible for the blunder.
